It’s a human thing
Pay is not just a number, it’s an emotional measure reflecting how valued an employee feels by their employer. In fact, open and honest discussion around pay was found to be more important than career advancement opportunities, employer appreciation and future enthusiasm for the company. If people feel that they are underpaid, and undervalued they are unmotivated, under productive, and rest assured that it’s only a matter of time before you lose them.
The cost to your organization
A survey of 71,000 employees by PayScale found that one of the top predictors of employee satisfaction and their intent to leave was a company’s ability to communicate clearly about compensation. When people believe, whether true or not, that they are under compensated, the outcome is often one or more of the following:
- Employees are less committed to the job and the company, which means less productivity.
- There’s often a push for more money and more authority.
- People don’t want to innovate and are not motivated to do their best.
- A trend of resistance emerges.
- A competitive environment that breeds hostility develops.
- Flat out quitting
The most impactful ways you can create a high-functioning, fully engaged team include:
Know your team’s value, and tell them, often
Most people don’t want to be overpaid: they want a paycheque that reflects what they are worth to the organization. According to The Society for Human Resource Management, recognition ranks in the top 10 factors influencing employee job satisfaction; 41% of millennials prefer to be rewarded or recognized for their work at least monthly, if not more frequently.
This year, 49% of organizations are aiming for pay transparency; manage expectations, offer benefits that mean something, and check in everyday to see how an employee is feeling and what they’re doing so you can get a real-time sense of what your team is facing and start a conversation ‘in the now’. Employees don’t want more money to be engaged — they just want more communication about it.
Have their backs
In a survey by Virgin Pulse of U.S. and Canadian employees, 40% said they wished their employers cared more about their financial well-being. Employees want to know you’ve got their back. Transparency and communication are more valuable to employees than higher pay. After all, employees are the glue that binds customers to a product. The relationships people have with a product, brand or person is a dominant competitive advantage, and generates prosperity.
For all inquiries, contact: Frances Mote firstname.lastname@example.org